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Glossary - C

Capital is money that is used to generate income or make an investment. For example, investors at Lendy invest their ‘capital’ in the loans shown on the platform.

Capital Gain

Capital Gain is an increase in the value of an asset making it worth more than it was bought for.

Capital Gains Tax

Capital Gains Tax is a tax on the profit when you sell (or 'dispose of') something (an 'asset') that's increased in value. It's the gain you make that's taxed, not the amount of money you receive.

Cash Flow

Cash flow is the net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts, reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future financial challenges.

Cash on Cash Return

The cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage.

Certificate of Good Standing (Certificate of existence)

This is a certificate issued to verify that a corporation exists and is authorised to do business. It is also known as a certificate of authorisation or certificate of existence.

Commentary (Loan)

The Commentary provided on the Lendy platform is a full description of the property you are investing in. For example, the commentary will provide investors with information such as the location, transport links and potential plans.

Commercial bridging loan

A Commercial Bridging Loan is a short-term loan generally for a maximum of 12 months secured against property/land to allow a borrower to secure long term finance, enhance value or sell an asset. The loan to value (LTV) is calculated on the value of the security when the loan is made. Some bridging loans are provided to enable borrowers to enhance the value of an asset by securing planning or building on land before securing long term finance or selling but this potential enhanced value is not usually included in the LTV.

Commercial Property

Commercial Property is property used purely for business purposes.

Comparative Market Analysis

Comparative Market Analysis (CMA) is an analysis of all nearby recently sold properties which are comparable. This helps establish a range for a property’s value about to be put on the market.

Compound Interest

Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

A County Court judgment is a court order sent by a County Court to collect money on which you owe. It’s one of several methods creditors can take in the debt collection process.

Credit Committee

A committee at Lendy composed of three of any of the following: the Head of Legal, the Head of Lending, the Head of Credit and a Director.

Credit Rating

A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting.

Credit Reference Agency

In the UK there are three main credit reference agencies – Callcredit, Equifax and Experian. They work with building societies, banks, mobile phone companies and other major retailers to help those businesses make a quick and accurate decision about whether the person applying for credit is likely to pay it back.

Credit Report

A Credit Report is a report detailing an individual's credit history. This is prepared by a credit reference agency and can be used by a lender to determine how creditworthy an individual is in the loan application phase.

Credit Score

A credit score is used by lenders to determine whether you qualify for a particular credit card, loan, mortgage or service.

Credit Search

A Credit Search is a check made by a lender using a credit reference agency to view your credit report, or your credit score. A credit search is different to an Enquiry, as in every case it relates to the assessment of an application for credit.

Crowdfunding

Crowdfunding is a way of raising finance by asking a large number of people each for a small amount of money. Until recently, financing a business, project or venture involved asking a few people for large sums of money.

Current assets

The amount of cash and other assets an individual or business has that are expected to be converted into cash within 12 months.

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Lendy Ltd ("Lendy") is a company registered in England and Wales under number 8244913 with its registered office and principal place of business at Brankesmere House, Queens Crescent, Southsea, Portsmouth, PO5 3HT. Lendy Ltd is authorised and regulated by the Financial Conduct Authority (FCA), number 654326, and is registered with the Information Commissioner's Office (ICO), number Z3404040.

All loans made through Lendy's platform are secured on UK property; however, your capital is at risk should a borrower default. Funds lent through a peer-to-peer website are not covered by the Financial Services Compensation Scheme (FSCS). Whilst no Lendy investor has been subject to any loss of capital, past performance is not a guarantee of future performance. Please obtain independent advice if you are in any doubt as to whether this platform is suitable for you or if you require tax advice. Please review our Please review our full risk assessment here.